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Prince Charles's aide grilled by MPs over tax affairs | |
(35 minutes later) | |
The Prince of Wales is not liable to pay corporation or capital gains tax, a senior royal aide has told MPs on the Public Accounts Committee. | |
William Nye told the MPs the Duchy of Cornwall - which provides the heir to the throne with a private income - was not a corporation and that the prince voluntarily pays income tax. | |
The committee chairwoman questioned the "fairness" of the tax arrangements. | |
The examination of the royal accounts is only the second meeting of its kind. | |
Chairwoman Margaret Hodge said: "We want to reflect on the current arrangements to see whether or not they reflect the reality of the world today." | |
But the royal aide said the prince's estate does not pay capital gains tax because he "doesn't have access to the capital gains. The capital gains are all reinvested in the duchy for future dukes". | |
Mr Nye told MPs the profits were used to pay for the prince's public duties, as well as those of his wife the Duchess of Cornwall and those of Prince William and the Duchess of Cambridge. | |
Mr Nye said that if parliament legislated to prevent Prince Charles using his private income in this way it would cost taxpayers more - to pay for his official duties - and he would be free to spend his money "on his other things". | |
The last time Prince Charles's representatives came before the Public Accounts Committee they were accused of performing financial "jiggery pokery" and he was said to be the recipient of the "best housing benefit scheme in the world". | The last time Prince Charles's representatives came before the Public Accounts Committee they were accused of performing financial "jiggery pokery" and he was said to be the recipient of the "best housing benefit scheme in the world". |
This time the committee is fresh from finding the tax affairs of Google, Starbucks and Amazon wanting. | This time the committee is fresh from finding the tax affairs of Google, Starbucks and Amazon wanting. |
Graham Smith, chief executive of the anti-monarchy group, Republic, said: "Everyone has a moral obligation to pay a fair rate of tax, whether that's Starbucks, Google or the heir to the throne. | Graham Smith, chief executive of the anti-monarchy group, Republic, said: "Everyone has a moral obligation to pay a fair rate of tax, whether that's Starbucks, Google or the heir to the throne. |
"We welcome the PAC investigation and hope that this exposure of the duchy's tax arrangements will force the government to act." | |
Earlier this month, the prince faced calls from Andrew George, the Liberal Democrat MP for West Cornwall, to "come clean" about the Duchy of Cornwall's tax arrangements. | Earlier this month, the prince faced calls from Andrew George, the Liberal Democrat MP for West Cornwall, to "come clean" about the Duchy of Cornwall's tax arrangements. |
The duchy is a £762m estate of about 131,000 acres, mostly in the south-west of England, from which the prince received a record £19m last year. | The duchy is a £762m estate of about 131,000 acres, mostly in the south-west of England, from which the prince received a record £19m last year. |
Clarence House has said public funding for the Prince of Wales fell by £1m to £1.2m in the last financial year, out of a total income of £20.2m. | Clarence House has said public funding for the Prince of Wales fell by £1m to £1.2m in the last financial year, out of a total income of £20.2m. |